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Reliance Steel & Aluminum Co Altman Z-Score

: 5.73 (As of Today)
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Good Sign:

Altman Z-score of 5.74 is strong.

Reliance Steel & Aluminum Co has a Altman Z-Score of 5.73, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Reliance Steel & Aluminum Co's Altman Z-Score or its related term are showing as below:

RS' s Altman Z-Score Range Over the Past 10 Years
Min: 2.61   Med: 3.69   Max: 5.97
Current: 5.74

During the past 13 years, Reliance Steel & Aluminum Co's highest Altman Z-Score was 5.97. The lowest was 2.61. And the median was 3.69.


Reliance Steel & Aluminum Co Altman Z-Score Historical Data

The historical data trend for Reliance Steel & Aluminum Co's Altman Z-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Reliance Steel & Aluminum Co Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.90 3.89 4.68 4.14 5.22

Reliance Steel & Aluminum Co Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Altman Z-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.68 4.82 5.22 5.57 5.56

Competitive Comparison

For the Steel subindustry, Reliance Steel & Aluminum Co's Altman Z-Score, along with its competitors' market caps and Altman Z-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Reliance Steel & Aluminum Co Altman Z-Score Distribution

For the Steel industry and Basic Materials sector, Reliance Steel & Aluminum Co's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Reliance Steel & Aluminum Co's Altman Z-Score falls into.



Reliance Steel & Aluminum Co Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

Reliance Steel & Aluminum Co's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.3228+1.4*0.6674+3.3*0.2584+0.6*3.2009+1.0*1.6345
=5.73

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Jun. 2022:
Total Assets was $10,403 Mil.
Total Current Assets was $5,024 Mil.
Total Current Liabilities was $1,666 Mil.
Retained Earnings was $6,943 Mil.
Pre-Tax Income was 762.6 + 697.2 + 547.4 + 532.6 = $2,540 Mil.
Interest Expense was -15.6 + -15.6 + -101.2 + -15.6 = $-148 Mil.
Revenue was 4681.2 + 4485.8 + 3988.7 + 3847.4 = $17,003 Mil.
Market Cap (Today) was $11,330 Mil.
Total Liabilities was $3,540 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(5023.9 - 1665.6)/10402.7
=0.3228

X2=Retained Earnings/Total Assets
=6942.5/10402.7
=0.6674

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(2539.8 - -148)/10402.7
=0.2584

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=11329.870/3539.6
=3.2009

X5=Revenue/Total Assets
=17003.1/10402.7
=1.6345

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Reliance Steel & Aluminum Co has a Altman Z-Score of 5.73 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Reliance Steel & Aluminum Co  (NYSE:RS) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Reliance Steel & Aluminum Co Altman Z-Score Related Terms

Thank you for viewing the detailed overview of Reliance Steel & Aluminum Co's Altman Z-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Reliance Steel & Aluminum Co Business Description

Reliance Steel & Aluminum Co logo
Traded in Other Exchanges
Address
350 South Grand Avenue, Suite 5100, Los Angeles, CA, USA, 90071
Reliance Steel & Aluminum is a metal service center in the United States, providing metal processing and inventory management services for carbon and stainless steel, aluminum, and alloys. The company provides over 100,000 product types to approximately more than 125,000 customers. Reliance predominantly supplies the nonresidential construction, automotive, aerospace, energy, transportation, and heavy equipment end markets. Its product offerings comprise alloy, aluminum, brass, copper, carbon steel, stainless steel, titanium, and specialty steel products.
Executives
Dellaquila Frank J director EMERSON ELECTRIC CO. 8000 W. FLORISSANT AVENUE ST. LOUIS MO 63136
Stotlar Douglas director C/O LSC COMMUNICATIONS, INC. 191 N. WACKER DRIVE, SUITE 1400 CHICAGO IL 60606
Seeger David W director 227 WEST MONROE STREET, SUITE 2600 CHICAGO IL 60606
Baldwin Lisa director 350 SOUTH GRAND AVENUE, SUITE 5100 LOS ANGELES CA 90071
Mcevoy Robert Ambrose director 350 SOUTH GRAND AVENUE, SUITE 5100 LOS ANGELES CA 90071
Figueroa John G. director 350 SOUTH GRAND AVENUE SUITE 5100 LOS ANGELES CA 90071
Colonias Karen Winifred director 5956 W. LAS POSITAS BLVD. PLEASANTON CA 94588
Kaminski Mark V director C/O COMMONWEALTH INDUSTRIES INC 500 WEST JEFFERSON SUITE 1900 LOUISVILLE KY 40202
Sharkey Andrew G Iii director 350 S. GRAND AVENUE, SUITE 5100 LOS ANGELES CA 90071
Lewis Karla R director, officer: President 350 S GRAND AVE STE 5100 LOS ANGELES CA 90071
Sales William K Jr officer: Special Advisor RELIANCE STEEL & ALUMINUM CO 350 S. GRAND AVE., SUITE 5100 LOS ANGELES CA 90071
Mollins Sean Michael officer: SVP, Operations 350 SOUTH GRAND AVENUE, SUITE 5100 LOS ANGELES CA 90071
Smith William A Ii officer: SVP, General Counsel, Corp Sec 350 S. GRAND AVE. SUITE 5100 LOS ANGELES CA 90071
Hoffman James Donald director, officer: CEO 350 S. GRAND AVE., STE 5100 LOS ANGELES CA 90071
Koch Stephen Paul officer: Sr. VP, Operations 350 S. GRAND AVE., STE. 5100 LOS ANGELES CA 90071

Reliance Steel & Aluminum Co Headlines

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